Accredited investor Definition

On July 15, the Senate approved the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) and President Obama is expected to sign the Dodd-Frank Act into law shortly. The Dodd-Frank Act will revise the definition of “accredited investor” under Rule 215 of the Securities Act of 1933 and Rule 501 of Regulation D as described below. Immediate Changes The Dodd-Frank Act revises the accredited investor definition as it relates to natural persons to exclude the value of a person’s primary residence from the $1 million net worth test. 1 The remaining aspects of the accredited investor ...

Accredited investor Definition - Trends

Investors in startups and small businesses have been concerned about language buried deep within the Restoring Financial Stability Act of 2010, the financial reform bill passed by Congress this week. At one point during the lengthy debate over the bill, it would have made two changes that would have had a negative impact on angel investing nationwide. First, the bill would have redefined “Accredited Investors” in a small business to require higher income levels and net worth. Accredited investors are wealthy individuals who register with the SEC and are able to demonstrate an understanding of risky investments such ...

(or Reg D) contains the rules providing exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the securities with the SEC. A Regulation D offering is intended to make access to the capital markets possible for small companies that could not otherwise bear the costs of a normal SEC registration. The regulation is found under Title 17 of the Code of Federal Regulations , part 230, Sections 501 through 508. The legal citation is 17 C.F.R. §230.501 et seq. Reg D is composed of various rules dictating the qualifications needed to meet the SEC exemptions. ...

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Even before Dodd-Frank is signed into law, a number of issues have arisen about how to interpret the statute. One area where members have sent in a variety of questions is Section 413 and the new definition of "accredited investor." Alan Parness of Cadwalader reports on the first Staff oral guidance regarding this new test: For those of you who may still be puzzled by the change to the net worth standard for accredited investors effected by Section 413 of the Dodd-Frank Act, Gerry Laporte, Chief of the Office of Small Business Policy of the SEC's Division of Corporation ... Read More

Education and information for real estate investors posted by "The Real Estate Investor's Lawyer" who specializes in providing legal services to investors in the areas of entity formation, litigation, purchase and sale agreements, loan workouts, syndications, commercial leases, construction agreements, estate planning, wills, trusts, and related areas. Yesterday, a new law went into effect that immediately changes the definition of "accredited investor" under the federal securities laws, having a potentially dramatic effect on the real estate investment market and the economy. President Obama signed ...
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On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Financial Bill”) into law. Set forth below are certain aspects of the Financial Bill which impact investment managers to hedge funds and private equity funds. The Financial Bill revises one of the definitions of an “accredited investor” under the Securities Act of 1933 (“1933 Act”). Specifically, in determining if a natural person is an “accredited investor” who meets the $1 million net worth test, the value of such person’s primary residence must now be ...
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This letter is to comment on the proposed rules defining the term "qualified
purchaser" under the Securities Act of 1933 as set forth in Release No. 33-8041 (the "Release"). Ladies and Gentlemen: First, the Staff is to be commended on a thorough and fair exposition in the Release of the issues underlying the proposed rule. Improving access to capital for small issuers is believed to be the most important single issue in facilitating the growth of the nation out of recession. As stated in a recent press release of the National Commission on Entrepreneurship in Washington, D.C.: "Policy makers in Congress and across the country ...
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The passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Bill") represents the most ambitious and thorough regulatory reform of the laws governing the financial industry since the Great Depression. Please log in below to access the full article. If you are not an existing Lexology
subscriber, please register for the free daily legal newsfeed service here . On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act ("PPACA"), the first part of Congress' historic health care reform legislation. Does your company provide its ...
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The headlines claim that the rally yesterday was due to improving earnings and earnings guidance. Hogwash. No doubt, there were some positive earnings and spin, but to say that prices would skyrocket on a couple of earnings numbers (Caterpillar ( CAT ) being one of them) is nuts. Initial Claims were somewhat weaker-than-expected but still in a period fraught with difficult-to-adjust seasonality. Existing Home Sales were somewhat stronger-than-expected, although not to say “strong.” Still, we can infer from the fact that Existing Home Sales are holding up reasonably well while New Home Sales are looking awful, ...
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The Securities and Exchange Commission today proposes a definition for the term "qualified purchaser" under the Securities Act of 1933 to implement a provision of the National Securities Markets Improvement Act of 1996. The proposed definition mirrors the definition of accredited investor under Regulation D of the Securities Act. Thus, the new qualified purchaser definition identifies well-established categories of persons we have previously  to be financially sophisticated and therefore not in need of the protection of state registration when they are offered or sold securities. This proposal should facilitate capital ...
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shall
mean any person who comes within any of the following categories, or who the issuer
reasonably believes comes within any of the following categories, at the time of
the sale of the securities to that person: Any bank as defined in section
3(a)(2) of the Act, or any savings and loan association or other institution
as defined in section 3(a)(5)(A) of the Act whether acting in its individual or
fiduciary capacity; any broker or dealer registered pursuant to section
15 of the Securities Exchange Act of 1934; any insurance company as defined
in section 2(a)(13) of the Act; any investment
company registered under the ...

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ACCREDITED INVESTOR DEFINITION

wac6http://bit.ly/b8Izou @joewallin post with answers to questions arising about the new accredited investor definition.

Scotty,
There are only two references to Regulation D in the document you
linked to, and neither of them (that I could see) make mention of any
in-depth explanations.
However, the SEC website does have such an explanation available just
the same, which you can see here: http://www.sec.gov/info/smallbus/qasbsec.htm The relevant section is extracted below...if this is what you need,
let me know, and I will post it as an answer to your question.
pafalafa-ga
===============
Q&A: Small Business and the SEC
D. Regulation D
Regulation D establishes three exemptions from Securities Act
registration. ...

As far as my understanding different series of funding happens at a different levels and stages of a company but just to have a clear understanding about these terms I am posting this question. Any Advice? I've able to collect some data s over the internet but a professional advice is required to make it more clear. Thanks in Advance Lemme share MY understandings regarding these terms Series A round financing happens after some success has been proven in the market (local test market, unique technology able to be valued, superior business plan and go-to market strategy, etc) Series B and C are growth stage financing rounds, ...